denotes premium content | Sep 3 2010 
News
posted 26 Jun 2009
Deal news
Esperanza secures $1bn copper project
The Esperanza copper mining development, backed 70/30 by London-based mining company Antofagasta and Marubeni Corporation, has secured $1.05bn in project financing, enabling it to go ahead.
Finance was provided by a consortium of lenders, including Japan Bank for International Cooperation (JBIC) to the tune of $400m, Export Development Canada (EDC) for $200m and KfW Ipex-Bank for $50m. A commercial banking syndicate of five mandated lead arrangers and bookrunners contributed a further $400m, including BTMU, Calyon, ING Capital, Mizuho Corporate Bank and SMBC. Natixis and Banco Santander acted as arrangers. The facility has a tenor of 12 years.
Antofagasta and Marubeni are providing certain completion guarantees, after which the funding will become non-recourse to the sponsors. The total project will cost $2.3bn, according to Antofagasta chief executive Marcelo Awad. The balance of the funding was raised when Antofagasta sold a 30% stake in the project to Marubeni in 2008 for $1.3bn.
The Esperanza mining development is located in Chile’s Antofagasta mining region. The deal was facilitated by the active involvement of the JBIC, EDC and KfW in bridging the liquidity gap in the markets today.
